£2 wine helps make Algarve cheapest eurozone holiday

THE Algarve is one of the cheapest places to buy a coffee or a glass of wine on holiday, a Post Office survey reveals.

Falls in the value of sterling against many other currencies and rises in resort prices mean the cost of typical tourist items are higher in four out of five popular resorts and cities compared with a year ago, according to Post Office Travel Money.

But prices have fallen year-on-year in six of the 10 cheapest destinations.

The annual Holiday Money Report, which surveyed 40 destinations, found that UK holidaymakers are paying more for expenses such as meals, snacks, drinks, suncream and insect repellent in locations such as the Costa del Sol, Marmaris in Turkey; Orlando, Florida, and Phuket in Thailand.

Meanwhile, the Algarve in Portugal is the cheapest of nine eurozone destinations surveyed despite prices rising by a third year-on-year.

Data show a glass of wine would cost less than £2 and a cup of filter coffee can be bought for 81p.

Cape Town in South Africa has the lowest prices for long-haul UK visitors.